Benchmark Electronics Earnings Preview

Benchmark Electronics (NYS: BHE) didn't hit the Street's expectations last quarter, but investors hope that it will rebound this quarter. The company will unveil its latest earnings on Thursday, July 28. Benchmark Electronics manufactures electronics and provides services to original equipment manufacturers of computers and related products.

What analysts say:

Buy, sell, or hold?: Analysts are bullish on Benchmark Electronics as two analysts rate it as a buy and only one analyst rates it as a sell. Analysts don't like Benchmark Electronics as much as competitor Plexus overall. Analysts still rate the stock a hold, but they are a bit more wary about it compared to three months ago.

Revenue Forecasts: On average, analysts predict $579.1 million in revenue this quarter. That would represent a decline of 1.7% from the year-ago quarter.

Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.31 per share. Estimates range from $0.30 to $0.31.

What our community says:CAPS All Stars are solidly backing the stock, with 96.8% giving it an "outperform" rating. The community at large concurs with the All Stars, with 93.7% awarding it a rating of "outperform." Fools are keen on Benchmark Electronics, though the message boards have been quiet lately with only 46 posts in the past 30 days. Benchmark Electronics has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:Benchmark Electronics' profit has risen year over year by an average of 29.5%. A year-over-year revenue decrease last quarter snapped a streak of three consecutive quarters of revenue increases.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters:

Quarter

Q1

Q4

Q3

Q2

Gross Margin

7.1%

7.8%

7.8%

8.0%

Operating Margin

3.1%

3.3%

3.9%

4.0%

Net Margin

2.9%

3.0%

3.7%

3.5%

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